According to an official from the China Banking and Insurance Regulatory Commission, China is increasing pressure on financial institutions to limit the growth of real estate loans after a property lending cap for big banks was imposed in December, reported Caixin.
The cap on property lending compelled big banks to reduce outstanding property loans while smaller banks continue to seek market share.
The move comes as part of a campaign by the government to cool the property market. The commission plans to increase scrutiny of banks with large proportions of property loans to prevent excessive real estate lending.